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Growing Demand For Convenience Foods Drives Botanical Extracts Market: An Emerging Driver Transforming The Botanical Extracts Market Landscape
Botanical Extracts
What Is the Botanical Extracts Market Size and Projected Growth Rate?
In recent times, there's been significant growth in the botanical extracts market. It is projected to increase from $7.07 billion in 2024 to $7.72 billion in 2025, with a compound annual growth rate (CAGR) of 9.2%. Factors such as traditional remedies, cultural and traditional usage, exploration and trade routes, along with supportive government regulations have been key to the growth observed in the historical period.
In the forthcoming years, the botanical extracts market is anticipated to experience swift expansion, reaching $11.63 billion by 2029 with a compound annual growth rate (CAGR) of 10.8%. The anticipated growth can be credited to various factors such as the increasing public awareness of health issues, escalating demand for functional foods and beverages, burgeoning interest in plant-derived products, the growing trend in herbal supplements, and increased disposable income. The key trends expected during the forecast period consist of technological advancements in research and development, the introduction of innovative goods, business mergers and acquisitions, and government-led initiatives.
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What Are the Major Segments in the Botanical Extracts Market?
The botanical extracts market covered in this report is segmented -
1) By Technology: CO2 Extraction, Solvent Extraction, Steam Distillation, Enfleurage, Other Technologies
2) By Source: Spices, Herbs, Flowers, Leaves, Other Sources
3) By Form: Liquid, Powder, Semi-Solid
4) By Application: Food And Beverages, Pharmaceutical And Nutraceutical, Cosmetics
Subsegments:
1) By CO2 Extraction: Supercritical CO2 Extraction, Subcritical CO2 Extraction
2) By Solvent Extraction: Ethanol Extraction, Hexane Extraction, Other Solvent-Based Methods
3) By Steam Distillation: Traditional Steam Distillation, Water Distillation
4) By Enfleurage: Cold Enfleurage, Hot Enfleurage
5) By Other Technologies: Microwave-Assisted Extraction, Ultrasound-Assisted Extraction, Cold Press Extraction
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What Are The Driving Botanical Extracts Market Evolution?
The botanical extracts market is being fueled by the escalating demand for convenience food products. Convenience food encompasses tertiary processed food that is ready to eat. In order to enhance the color and flavor of ready-to-eat and high-fat foods, such as meat, botanical or plant extracts are employed. These extracts, laden with concentrated medicinal properties, are utilized within the food industry to provide health benefits. Thus, with the rise in convenience food demand, the botanical extracts market is anticipated to experience growth. For example, in 2022, the U.S. Department of Agriculture's Economic Research Service, a government agency based in the U.S., reported that 11.3% of total food expenditures by U.S. consumers was spent on eating out. Therefore, the need for convenience food products is propelling the botanical extracts market.
Which Firms Dominate The Botanical Extracts Market Segments?
Major companies operating in the botanical extracts market include International Flavors & Fragrances Inc., Himalaya Herbal Healthcare, Blue Sky Botanics Ltd., Naturex, Synthite Industries Ltd., Nexira, Layn Natural Ingredients Corp., Indesso, Dohler GmbH, Hunan Nutramax Inc., Haldin Natural, Nutra Green Biotechnology Co. Ltd., Kalsec Inc., Arjuna Natural Pvt. Ltd., Shaanxi Jiahe Phytochem Co. Ltd., Tianjin Jianfeng Natural Products Co. Ltd., Bio-Botanica Inc., Nature's Power Nutraceuticals Corp., Synergy Flavors, Martin Bauer Group, Lipoid-Kosmetik, Phytochem India, Plant Extracts International Inc., Kuber Impex Ltd., Ransom Naturals Ltd., MB-Holding GmbH & Co KG, Frutarom Industries Ltd., Biomax Life Sciences Ltd., Organic Herb Inc., Xi'an Sgonek Biological Technology Co. Ltd.
What Trends Are Expected to Dominate the Botanical Extracts Market in the Next 5 Years?
The botanical extracts market is experiencing a surge in popularity due to a trend towards Product Innovation. A number of leading corporations in the sector are creating extracts with improved bioavailability. For instance, in September 2022, Layn Natural Ingredients, a manufacturing firm based in China that focuses on providing innovative natural and botanical extract ingredients, introduced bio Quercitrin. This is an easily absorbable version of Quercetin intended for nutraceutical applications. What sets Bio+Quercitrin apart is its strong antioxidant flavonoid properties that help mitigate free radicals and reduce oxidative stress. By having a ribose molecule attached, Layn's Bio Quercetin is six times more absorbent and can permeate more easily in the small intestine compared to the conventional Quercetin. Layn bio+Quercitrin, apart from replacing regular Quercetin, is a stable, soluble, and bioavailable version that proves effective as a standalone supplement or within formulations for human and pet health.
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Which Is The Largest Region In The Botanical Extracts Market?
North America was the largest region in the botanical extracts market share in 2024. The regions covered in the botanical extracts market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
Frequently Asked Questions:
1. What Is the Market Size and Growth Rate of the Botanical Extracts Market?
2. What is the CAGR expected in the Botanical Extracts Market?
3. What Are the Key Innovations Transforming the Botanical Extracts Industry?
4. Which Region Is Leading the Botanical Extracts Market?
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